Posted on 02/10/2009 5:06:29 PM PST by Protect the Bill of Rights
Chicago South Side and south suburban community groups will urge their congressmen to tighten the reins on marketing assumable federal housing loans. The Calumet Community Religious Conference , a coalition of 60 Catholic and Protestant churches, has drafted a letter for community leaders and residents to send to congressmen asking them to take action. Community leaders and real estate agents say that some of the blame lies with the Federal Housing Administration and Veterans Administration, agencies that maintain little control over their loans.
The outcry grew out of a recent skirmish between south suburban officials and a real estate agency. The South Suburban Housing Center, a private, nonprofit fair-housing association funded by 13 south suburban communities , claimed the real estate agency`s recent advertisements appeal to prospective homeowners who are likely to default on their loans or allow their homes to deteriorate.
That, the south suburban leaders say, could undermine their attempts to promote economic and racial balance in their communities and could lead to neighborhood blight.
At the center of the controversy are Veterans Administration and Federal Housing Administration loans, which anyone with a little cash can take over from the original borrower. No credit check or verification of employment is required.
Century 21/Cardinal-Elm Tree Inc., an agency with offices in Hazel Crest, Harvey and Markham, recently ran ads in a real estate advertising magazine that stated: ``Do you have bad credit? Have you had a foreclosure? Do you have unstable employment? Have you filed a straight bankruptcy or Chapter 13? It`s OK. There is no need for credit or employment verification when purchasing on an assumption basis.``
(snip)
Joe Martin, director of community relations for Hazel Crest and Country Club Hills, said, ``There`s a potpourri of problems that can arise from generating buyers that may not be capable of buying a home.
``People who are financially strained to purchase a home and are buying it marginally are not going to be able to afford the ongoing maintenance of a home. They frequently might run into other financial problems which would cause them to go into foreclosure or simply abandon a home if they don`t have too much equity in it.`` ``That has a detrimental impact, and not only on the family that was occupying that unit,`` Martin said.
``The other effect is a residual effect within the community . If people living within the community feel that a particular company is specifically marketing to marginal buyers, that then tends to make them nervous about the future economic viability of the community they live in.``
Until I saw the date of the article, I thought I had changed universes.
ping
It did lead to collapse of neighborhoods. Social engineering doesn’t work. The way to end prejudice and inequality is through education and spiritual enlightenment, not though government manipulation. The government does have the responsibility to protect citizens against prejudice and provide a level playing field, but government cannot assure an outcome. That has to come from the efforts and the hearts of individuals. Loosening monetary policy was in my opinion an attempt at social engineering, and in the end what it did best was to hurt the people it purported to help.
Chicago South Side and south suburban community groups will urge their congressmen to tighten the reins on marketing assumable federal housing loans. The Calumet Community Religious Conference, a coalition of 60 Catholic and Protestant churches, has drafted a letter for community leaders and residents to send to congressmen asking them to take action. Community leaders and real estate agents say that some of the blame lies with the Federal Housing Administration and Veterans Administration, agencies that maintain little control over their loans. The outcry grew out of a recent skirmish between south suburban officials and a real estate agency. The South Suburban Housing Center, a private, nonprofit fair-housing association funded by 13 south suburban communities, claimed the real estate agency's recent advertisements appeal to prospective homeowners who are likely to default on their loans or allow their homes to deteriorate. That, the south suburban leaders say, could undermine their attempts to promote economic and racial balance in their communities and could lead to neighborhood blight.
The Catholic Church helping ACORN again.
If all this “stimulus money and bank bail out money would pay off 90% of all mortages, then what the gov should do is send the money to the homeowners with the stipulation that it can only be cashed by the mortage company. If 70% of our economy comes from consumer speding what would happen if consuremers had their mortgage money free and clear? Then the banks and lenders would have cash instead of loans. The feds would have 0 mortgage deductions next year on returns so they will get more money in 2010. The consumer, the banks and the government would all win. Plus it would give them a chance to revise and simplfy the tax code for 2010.
What chaos can be wrought in the course of using ‘communities’ as stepping stones in ascension to higher elected office.
But it does show the roots of the problem that we have today.
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